Currently reading: Jaguar Land Rover and Tesla in deal on EU emissions targets
British firm joins Tesla's 'pool' to share CO2 fleet emissions targets in a move that could help it avoid fines

Jaguar Land Rover has joined Tesla's manufacturer pool for European Union CO2 emissions, a move that's likely designed to help the firm avoid paying fines for missing its targets.

Under EU rules, car firms are required to achieve increasingly tough average CO2 emissions targets for their car fleets. Any that misses its target faces a heavy fine of €95 (£77) per vehicle per g/km.

However, the EU does allow car firms to combine their fleets into pools, which it then counts as a single entity when determining average CO2 emissions. That has led to a number of deals with firms set to miss their fleet targets paying manufacturers with low emissions to join a pool.

Jaguar Land Rover (JLR) has now joined Honda in a pool that was formed by Tesla, with the move confirmed on the European Commission website, having been initially reported by industry analyst Matthias Schmidt.

With Tesla’s fleet entirely electric and therefore emissions-free, the move will likely help JLR to avoid potential fines for missing its targets. The financial terms of the deal are also unknown.

JLR had previously said that it expected to hit its emissions targets this year, although it's possible that the impact of the global semiconductor shortage on its production and sales mix could have impacted this.

The firm currently offers a single fully electric vehicle, the Jaguar I-Pace, and has introduced plug-in hybrid versions of a number of its vehicles.

A spokesperson for JLR said the firm was unable to comment ahead of the imminent publication of the firm’s latest quarterly financial results.

JLR wouldn't be the first firm to pay substantial sums of money to Tesla for help in hitting emissions targets. As well as Honda, Fiat Chrysler Automobiles was part of Tesla’s EU pool until earlier this year, while the EV firm has done similar deals with firms in the US. In 2018, Tesla made £164 million by selling such credits to rivals.

Other car firms have also benefitted from similar deals. Ford had to forge a deal with Volvo last year to create a pool to avoid EU fines after delays in production of the Kuga plug-in hybrid, while the Volkswagen Group’s pool includes MG and its Chinese parent firm SAIC.

Join the debate

Add a comment…
harf 26 October 2021

Surely the last thing a manufacturer would want to do is pay money to a direct competitor, but that is the option many are taking. Even if you could pool emissions, it would surely be a last resort.

Where the EU have screwed up is making the fine way too excessive. Excessive out not, the fines should, crucially, be invested into the EV charging network across Europe. Then you're investing in mutually beneficial infrastructure by paying the fine and not giving money to a competitor

Electrohead 26 October 2021

What's wrong with legacy auto, who have resisted the move to EVs tooth and nail, paying companies making zero emission vehicles when they are clearly either incapable or unwilling to do so themselves? They only have themselves to blame for not moving faster to electrification. I'd say the policy is working as intended. They've already paid billions to Tesla, which has helped Tesla survive and grow and deliver what the EU want (but maybe hoped a Euro manufacturer might be able to deliver). Jaguar are not sticking two fingers up at climate change, they see the water rising but have no choice but to jump on the crocodile's back just to survive a little longer.  

scotty5 26 October 2021

I'd like to say the cheating bar stewards, but they're not cheating, they're simply playing the now seriously flawed system by the book.

As per above it doesn't bode well for anyone. Jaguar sticking two fingers up at climate change, Telsa sticking two fingers up playing the environmental angle but most of all, that shambles over in Brussels. Why did they allow manufacturers to form which is essentially a cartel in order to cheat the system? So the EU's policy isn't worth the paper it's written on, now there's a surprise.